Benefits of buying a house in areas with good employment prospects

In real estate, location is a key factor that influences property purchase decisions. When considering a location, prospective buyers often look for social infrastructural facilities, including public transportation, schools, hospitals and shopping hubs. More importantly, buyers look for easy accessibility to offices and workplaces. Moreover, location and the liveability of the area impact property prices. For example, a house close to a bustling commercial hub is expected to have a good price appreciation and fetch higher rent than a similar property located further away from these facilities in the same region. In this guide, we discuss the benefits of buying a house near one’s workplace or investing in a location with good employment prospects.

#1. Easy access to office

Proximity to one’s workplace is one of the compelling reasons for buying a property in a particular locality. This trend is seen among young homebuyers and working professionals as they are likely to have more job opportunities. Such localities witness an increased demand for properties for buying and renting. This also means that a residential property with fewer amenities but closer to an office hub is likely to find more buyers and renters compared to a gated project with several amenities in a faraway location.

Thus, localities with thriving IT parks and industrial hubs tend to see high property demand due to the constant influx of people searching for jobs.

On the other hand, commuting to one’s workplace from a house located farther away can be more difficult or time-consuming for an individual.

#2. Access to infrastructural facilities

Usually, office hubs have good connectivity through public transportation like buses and metros. In many key cities, such as Bangalore and Delhi, there are several upcoming metro projects that aim to boost connectivity to commercial hubs. Big cities such as Bangalore often witness extreme traffic congestion due to the rising population. Commuting to work by road becomes a hassle for several working professionals. Thus, it is crucial to check if there are upcoming metro projects and road projects like flyovers, highways or expressways when purchasing a property in a specific locality. In addition, areas around bustling office hubs are well-developed, and social infrastructural facilities such as shopping malls, schools, colleges, and hospitals are available. These are necessary to ensure a comfortable lifestyle for the residents.

Developers focus on launching their projects in strategic locations where a prospective buyer has easy access to offices while enjoying nearby social amenities. Typically, these include gated projects with amenities like a swimming pool, clubhouse, etc. Hence, the property prices could be on the higher side, but it can be seen as a good investment in the long run.

#3. Better quality of life

Given the smooth access to lifestyle amenities and lower commute time to the workplace, the residents living near an office hub can look forward to a better work-life balance. The availability of ample job opportunities near one’s house enables one to make better career decisions and face less risk of unemployment and economic downturn. Moreover, with an easier commute to the workplace, an employee can focus on their career advancements and networking. They can devote their spare time to social engagement opportunities or spending time with family, leading to a better quality of life.

#4. Scope for property price appreciation

There are several factors that influence property price appreciation in a location. Property values are mainly influenced by the demand and supply dynamics. High-growth areas and bustling localities witness a steady demand for properties and the price begins to increase when the supply is limited. Among the various other factors that impact property values, the presence of employment hubs plays an important role.

If there are MNCs, IT hubs or retail spaces in a locality, then more home seekers tend to look for homes in these areas owing to the location advantages. The desirability of the area positively impacts property demand. With an increased demand and development of the locality, property prices tend to appreciate over time. Therefore, such localities are an excellent choice if one is purchasing a property for investment purposes because the resale value will be high due to the economic growth of the region.

#5. Rental income opportunities

Areas with good employment prospects, such as corporate offices and industries, tend to attract a lot of working professionals. Most of these people look for rented properties. Thus, investing in such a location is a good opportunity for property owners to earn a steady rental income. The rental rates in these areas tend to be higher compared to rent for similar properties in other locations.

Central business districts (CBD) are areas with several commercial, retail and business centres. These areas witness increased economic activities, creating rental demand for commercial spaces, including offices, retail spaces, restaurants, hotels and residential properties. Thus, investing in a property in such a location will attract potential tenants. This is a key driving factor for the rental market in busy commercial hubs, which increases rental values over time.

#6. Future growth potential

The bustling business districts in a city play a crucial role in shaping the real estate landscape of that city. These areas see rapid urbanisation and infrastructural development, including the creation of strong transport networks. The strong employment prospects of such areas present a positive picture, attracting new businesses and industries to set up their operations. There is possibilities of government and private sector investments in infrastructure and development in these regions. Owing to these factors, the real estate market in areas with good employment prospects are to likely to see growth. This increases the scope for higher returns on investments for those buying a property in such areas.

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There are more benefits of purchasing a house near an employment hub and nearly no disadvantages. Whether one is looking to buy a house for end use or for investment purposes, there are a lot of benefits owing to thriving economic activities in such areas. One is likely to lead a better quality life due to the easy commute to work or earn additional income by renting the property to tenants. To understand the investment prospects of purchasing a residential property in a commercial area, one can approach an experienced real estate agent who can help assess the neighbourhood and property values.

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